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  3. 4 problem 1 on june 1, 2017, everly bottle company

4 PROBLEM 1 On June 1, 2017, Everly Bottle Company sold $400,000 in long-term bonds....

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4 PROBLEM 1 On June 1, 2017, Everly Bottle Company sold $400,000 in long-term bonds. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds to be accounted for under the effective-interest method. are Instructions (a) Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first two Years. Make sure all columns and TOWS are properly labeled. (Round to the nearest dollar.) (c) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2019. (Round to the nearest dollar.)

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